CEOs we can't believe are still CEOs

Some leaders get you out of a crisis, some bury you deeper. Count these executives among the latter.

By Julie Balise, SFGate

on March 5, 2014 7:00 AM

Photo: Seth Perlman, File/AP Photo

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Mark Karpeles, Mt. Gox

Some leaders get you out of a crisis, some bury you deeper. Count these executives among the latter.

Mt. Gox CEO Mark Karpeles is quickly becoming the face of cryptocurrency concerns. He took over the Tokyo-based exchange in 2011 and oversaw it as bitcoin's value surged. Then something went wrong. The site filed for bankruptcy protection in February 2014. Karpeles said that 750,000 bitcoins deposited by users and 100,000 bitcoins belonging to the exchange disappeared, for a loss of about $425 million. Karpeles has blamed theft through hacking for the loss. Mt. Gox is now the target of a class-action lawsuit filed in a U.S. federal court claiming that users were not sufficiently protected.

Karpeles is one of many chief executives in the spotlight -- for all the worst reasons -- recently. Let's take a look at some other CEOs who have held their grips on the top.

Some leaders get you out of a crisis, some bury you deeper. Count... Photo-5978661.81337 - Connecticut Post

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Tim Armstrong, AOL

Recent years have not been kind to AOL CEO Tim Armstrong, and he hasn't been exceptionally kind back. The cofounder of hyperlocal news website Patch was named chief executive of an ailing AOL in 2009. Since then, he's watched his pet project struggle. He famously fired a Patch employee over taking a photograph during a conference call in August 2013. AOL spun off Patch to Hale Global in January 2014, when it made headlines again for laying off hundreds of employees during a conference call.

Armstrong's biggest oops of recent history came in February 2014 when he said two "distressed babies" with high medical costs were to blame for a change to the company's 401(k) policy. He later apologized and reversed the 401(k) change.

Recent years have not been kind to AOL CEO Tim Armstrong, and he hasn't been exceptionally kind back. The cofounder of hyperlocal news website Patch was named chief executive of an ailing AOL in 2009. Since ... more

Photo: Kathy Willens, Getty Images

Recent years have not been kind to AOL CEO Tim Armstrong, and he... Photo-5978662.81337 - Connecticut Post

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Jamie Dimon, JP Morgan Chase

JP Morgan Chase has paid more than $25 billion in fines in the last two years, according to The Wall Street Journal, to settle allegations of wrongdoing in the London Whale trades, deceiving investors about mortgage underwriting before the financial crisis, and more. One might expect a shakeup on top after all that. One would be wrong.

Jamie Dimon has held onto the chief executive, president, and chairman seats -- and he's still getting raises. Dimon reportedly received a 74% raise in 2013, bringing his compensation to $20 million for that year.

JP Morgan Chase has paid more than $25 billion in fines in the last... Photo-5978663.81337 - Connecticut Post

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Mike Jeffries, Abercrombie & Fitch

A seven-year-old quote came back to bite Abercrombie & Fitch chairman and chief executive Mike Jeffries last year. "We go after the attractive all-American kid with a great attitude and a lot of friends," he said in the January 2006 Salon piece. "A lot of people don’t belong [in our clothes], and they can’t belong. Are we exclusionary? Absolutely." The retailer's women's clothes range in size from XS to L, or 000 to 12, while men's clothes go from XS to XXL.

Jeffries issued a statement last spring saying the quote was taken out of context and regretting that his "choice of words was interpreted in a manner that called offense." He added that Abercrombie & Fitch opposes bullying, discrimination, and derogatory characterizations.

A seven-year-old quote came back to bite Abercrombie & Fitch chairman and chief executive Mike Jeffries last year. "We go after the attractive all-American kid with a great attitude and a lot of friends," he ... more

Starting with the good: American Apparel's clothes are made in America. This gives chief executive and chairman Dov Charney some grounds to criticize companies that manufacture clothes in poor conditions overseas. Criticize he did after the garment factory collapse in Bangladesh in April 2013. "I think man has evolved and we're moving away from slavery," he told the Huffington Post at that time.

Starting with the good: American Apparel's clothes are made in America. This gives chief executive and chairman Dov Charney some grounds to criticize companies that manufacture clothes in poor conditions ... more

Photo: Keith Bedford, Getty Images

Starting with the good: American Apparel's clothes are made in... Photo-5978665.81337 - Connecticut Post

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Eddie Lampert, Sears

How does a hedge fund manager solve a problem like Sears Holdings? We're still not sure. In January 2013, Eddie Lampert was named chief executive of the struggling department store chain. Its subsequent earnings weren't great: The company reported a net loss of $358 million in the fourth quarter 2013 and a net loss of $1.4 billion for the year. It still may be too early tell what Lampert can do for Sears.

Lampert said Sears made investments in 2013 that will help it learn more about the customers to develop deeper relationships with them and provide the services they want. "While transformations of this size are challenging, and our financial results do not currently reflect our progress in member engagement, we believe the changes we are making ... will benefit us in the changing retail landscape," he said in a statement.

How does a hedge fund manager solve a problem like Sears Holdings? We're still not sure. In January 2013, Eddie Lampert was named chief executive of the struggling department store chain. Its subsequent ... more

Photo: Seth Perlman, Getty Images

How does a hedge fund manager solve a problem like Sears Holdings?... Photo-5978666.81337 - Connecticut Post

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Brian Moynihan, Bank of America

While it's not entirely his fault, Brian Moynihan's four years leading Bank Of America have not been its smoothest. Most notably, the bank was fined $2.1 billion after being found liable in October 2013 for fraud over defective mortgages sold by its Countrywide unit. Bank of America is now weighing its options for an appeal. The bank also received a wave of criticism in 2011 after announcing a $5 per month fee for debit card customers. It dropped the fee and has watched its stock rise since that year. Moynihan received a 17% raise in 2013, bringing his salary to $14 million, according to The Wall Street Journal. less

While it's not entirely his fault, Brian Moynihan's four years leading Bank Of America have not been its smoothest. Most notably, the bank was fined $2.1 billion after being found liable in October 2013 for ... more

Another financial institution, another fine. Goldman Sachs in 2011 paid $550 million to settle Securities and Exchanges Commission charges that it defrauded investors by misstating and omitting facts about a financial product tied to subprime mortgages. Its chairman and chief executive Lloyd Blankfein was later accused by Sen. Carl Levin of misleading Congress -- under oath -- about Goldman Sachs' actions. Blankfein hired a defense attorney, but perjury charges never emerged. The bank has seen solid growth, with 2013 net earnings up 8% over 2012. Blankfein received $26 million compensation for 2013, according to Bloomberg. less

Another financial institution, another fine. Goldman Sachs in 2011 paid $550 million to settle Securities and Exchanges Commission charges that it defrauded investors by misstating and omitting facts about a ... more

It's not so much that John Chambers has been a bad chief executive at Cisco Systems. It's more that he's overseen so many bumps, stock dips, and reorganizations since taking over in 1995. In 2012, Bloomberg reported that Chambers would likely retire in the following two to four years and named some potential successors. Chambers post-2000 leadership has been deemed a failure by some media reports. The company's second-quarter earnings 2014 showed an 8% decrease in revenue year over year, while net income was down 54% compared to the second quarter of 2013. less

It's not so much that John Chambers has been a bad chief executive at Cisco Systems. It's more that he's overseen so many bumps, stock dips, and reorganizations since taking over in 1995. In 2012, Bloomberg ... more

Photo: Jin Lee, Getty Images

It's not so much that John Chambers has been a bad chief... Photo-5978669.81337 - Connecticut Post

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Michael Dell, Dell

Michael Dell is the company he leads -- in name at least. Unfortunately, that company is looking weak after years of dropping PC sales. Dell and Silverlake Partners took the company private in October 2013 for $24.9 billion, a move loudly criticized by activist investor Carl Icahn. Shareholders received $13.75 per share, according to Dell, down significantly from the stock's $50-plus peak in 2000.

Dell took a break from the CEO role from 2004 to 2007. In 2010, the company paid more than $100 million to settle fraud charges filed by the Securities and Exchange Commission. Michael Dell and former CEO Kevin Rollins paid $4 million each, while former CFO James Schneider paid $3 million to settle.

Michael Dell is the company he leads -- in name at least. Unfortunately, that company is looking weak after years of dropping PC sales. Dell and Silverlake Partners took the company private in October 2013 for ... more

Photo: Gary Miller, Getty Images

Michael Dell is the company he leads -- in name at least.... Photo-5978670.81337 - Connecticut Post